Definition of an Investment Advice Fiduciary

Retirement Security Rule: Definition of an Investment Advice Fiduciary RIN 1210–AC02 Comments of the Consumer Technology Association Below please find the Consumer Technology Association's abbreviated comments on Retirement Security Rule: Definition of an Investment Advice Fiduciary RIN 1210–AC02. Our full comments can be found in the attached document. The Consumer Technology Association, representing over 1000 US technology companies, fully supports the goals behind the proposal that all American employees should be getting financial advice based on a clear fiduciary obligation. We find it inconceivable that American business leaders, other than those running front-loaded or high-commission mutual funds would oppose the principles behind this pro-employee proposal. Therefore, we support the Department's proposed rule amending the current regulation that defines who is a "fiduciary" of an employee benefit plan for purposes of Title I of the Employee Retirement Income Security Act of 1974 (ERISA) This altered rule marks a significant stride toward safeguarding American investors. It mandates that trusted investment advisers uphold elevated standards of care and loyalty in their investment recommendations, steering clear of suggestions that prioritize their financial interests over the well-being of retirement savers. This is a matter of common sense. In addition to crucial protections, the proposed rule encompasses advice about rollovers to IRAs, guidance to retirement plans like 401(k)s, where a substantial portion of retirement investments is held, and advice about insurance products not currently safeguarded under securities laws. These decisions are pivotal for millions of Americans, and this rule ensures that savers across all income levels can confidently collaborate with investment professionals, knowing that their adviser prioritizes their interests over third-party concerns. Such expectations are entirely reasonable. This changed rule would mark a major step forward in the protection of American investors. The rule would protect retirement investors by requiring trusted advice providers to adhere to high standards of care and loyalty when they make investment recommendations, and to avoid recommendations that favor their financial interests at the expense of retirement savers. This should not be controversial - it is simply fair to all Americans who trust a financial advisor with their hard-earned savings. The Department should not be swayed by groups, even national business groups claiming to represent the entire business community, in opposition to this proposal. They are merely advocating for a small, unrepresentative fraction of the financial industry, driven by financial motives that disregard the individual investors and the majority of business leaders' views. Numerous CEOs, including those leading well-known and smaller companies, support this proposal, understanding the importance of shielding employees from practices such as churning or high commissions. More, many financial professionals, including well-known trading platforms and investment advisory firms, already meet the proposed standards and want to see rules in place that require high-quality retirement investment advice that is not tainted by conflicts of interest. While we endorse the proposed rule, we recognize the potential for improvement. Companies like the Consumer Technology Association aim to assist employees in navigating retirement plan options out of genuine concern for their financial future. Voluntary corporate employee financial education offerings, such as Delta Airlines CEO Ed Bastien's announcement of a financial literacy program for all Delta employees, exemplify the positive impact of corporate financial well-being programs within clear, easy-to-follow guidelines. We believe that companies providing financial literacy and explaining their benefits program should be protected from unnecessary mandates or…